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Microsoft Challenges Amazon Web Services With Cycle Computing Acquisition

Among the top players in the tech industry, Amazon Web Services (AWS) is
the undisputed king of cloud computing, leading the pack by a wide margin
in the relatively new but lucrative segment. However, rivals do not plan to
let AWS reign unchallenged. In fact, analysts believe that the Amazon will
have to brace for a serious contender soon with Microsoft's recent
acquisition of Cycle Computing, which aims to revamp the services being
offered by its own cloud computing platform, Microsoft Azure.

Microsoft announced last Tuesday, that it acquired Cycle Computing, a
high-performance computing, and cloud orchestration company known for its
software that lets companies run massive apps in the cloud. While the
acquisition cost was not disclosed, industry watchers agree that it was a
brilliant move on Microsoft's part as it will complement Azure, its cloud
computing business.

While Cycle Computing may not have brand recognition outside tech circles,
it was instrumental in shaping cloud computing as we know it today,
according to Business Insider. In 2012, Cycle transformed Amazon's emerging
Web Services into a supercomputing powerhouse with computing power said to
be equivalent to 50,000 individual PCs.

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In fact, Cycle boasts of an elite clientele to this day, which includes top
cloud vendors AWS, Microsoft Azure and Google. Other big clients using
Cycle Computing's suite of cloud orchestration products include NASA,
Pacific Life, MetLife, Novartis, as well as various biotech, media, and
manufacturing corporations.

Just how far ahead is AWS in the cloud computing game? At the moment,
reports indicate that Amazon's cloud computing division enjoys a lion share
of the public cloud computing pie capturing 41 percent of the market.
Microsoft Azure is a distant second at 13 percent, followed by Google with
its 7 percent and IBM with 5 percent market share.

However, Microsoft's acquisition of Cycle could shake things up. Azure has
enjoyed explosive revenue growth since last year. Revenues rose by 97
percent for the quarter ending June 2017 with the prior three quarters
registering stunning growth rates of 93%, 93%, and 116% respectively.
Meanwhile, AWS managed to grow its revenue by 42 percent for the first half
this year, which is impressive but is still relatively tame compared to
Azure's recent performance.

With Cycle to support its efforts, Azure could close AWS' lead even faster
as it begins to offer more competitive products. But of course, the bets
are Amazon is not going to take this challenge sitting down. Expect the
battle for the cloud to heat up soon.

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<p class="h1"><a
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style="color: #333333; text-decoration: none;">Microsoft Challenges Amazon
Web Services With Cycle Computing Acquisition</a></p>
<p>Among the top players in the tech industry, Amazon Web Services (AWS) is
the undisputed king of cloud computing, leading the pack by a wide margin
in the relatively new but lucrative segment. However, rivals do not plan to
let AWS reign unchallenged. In fact, analysts believe that the Amazon will
have to brace for a serious contender soon with Microsoft's recent
acquisition of Cycle Computing, which aims to revamp the services being
offered by its own cloud computing platform, Microsoft Azure.</p>
<p>Microsoft announced last Tuesday, that it acquired Cycle Computing, a
high-performance computing, and cloud orchestration company known for its
software that lets companies run massive apps in the cloud. While the
acquisition cost was not disclosed, industry watchers agree that it was a
brilliant move on Microsoft's part as it will complement Azure, its cloud
computing business.</p>
<p>While Cycle Computing may not have brand recognition outside tech
circles, it was instrumental in shaping cloud computing as we know it
today, according to Business Insider. In 2012, Cycle transformed Amazon's
emerging Web Services into a supercomputing powerhouse with computing power
said to be equivalent to 50,000 individual PCs.</p>
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<p>In fact, Cycle boasts of an elite clientele to this day, which includes
top cloud vendors AWS, Microsoft Azure and Google. Other big clients using
Cycle Computing's suite of cloud orchestration products include NASA,
Pacific Life, MetLife, Novartis, as well as various biotech, media, and
manufacturing corporations.</p>
<p>Just how far ahead is AWS in the cloud computing game? At the moment,
reports indicate that Amazon's cloud computing division enjoys a lion share
of the public cloud computing pie capturing 41 percent of the market.
Microsoft Azure is a distant second at 13 percent, followed by Google with
its 7 percent and IBM with 5 percent market share.</p>
<p>However, Microsoft's acquisition of Cycle could shake things up. Azure
has enjoyed explosive revenue growth since last year. Revenues rose by 97
percent for the quarter ending June 2017 with the prior three quarters
registering stunning growth rates of 93%, 93%, and 116% respectively.
Meanwhile, AWS managed to grow its revenue by 42 percent for the first half
this year, which is impressive but is still relatively tame compared to
Azure's recent performance.</p>
<p>With Cycle to support its efforts, Azure could close AWS' lead even
faster as it begins to offer more competitive products. But of course, the
bets are Amazon is not going to take this challenge sitting down. Expect
the battle for the cloud to heat up soon.</p>
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